Prescription drugs are a vital component of our health care system and an important consideration in our personal budgets. Many ailments that were once deemed untreatable, or otherwise required treatment with invasive procedures, are now routinely and successfully treated with prescription drugs. But these advances have come at a price that is unaffordable for many Utahns. According to state reports, about one fourth of older Utahns take five or more prescription drugs on a regular basis. Nearly a fourth of Utahns age 55 and older spend at least $100 per month on out-of-pocket prescription expenses, and six percent spend $200 or more per month.

I support the consideration of a preferred drug list to help Utah's Medicaid program manage the problem of increasing drug costs. Utah Medicaid spent $159.5 million for drugs in 2003, an increase of 18.6 percent from 2002. The Utah Department of Health estimated that responsible use of a preferred drug list would save $3 million dollars per year, which could be used for useful extensions of eligibility and coverage. This program could also be useful in coordination with multi-state purchasing pool plans (as discussed below). I would only support a preferred drug list, however, that includes necessary safeguards, including proper consideration of physician discretion.

There are many other important measures we should take to contain the rising costs of prescription drugs:

— Examine the role of generic prescription drugs. Many patients and providers are simply unaware of generic alternatives. Although generic prescription drugs are promising, we must be certain that they provide the same benefits as their non-generic counterparts. Once it is determined that a generic prescription drug provides equivalent therapeutic benefits, educational programs should encourage the use of these lower-cost prescription drugs.

— Encourage statewide efforts to help Utahns obtain safe and affordable prescription drugs. Utah's Prescription Drug Assistance Program, which provides information about obtaining drugs at reduced cost, is a positive step in this effort. The American Association of Retired Persons (AARP) and Area Agencies on Aging provide similar assistance.

— Manage our publicly financed health insurance programs to cut prescription drug costs, and extend these savings to others. We should explore the possibility of state government, perhaps in concert with other states, sharing the savings it negotiates for Medicaid with low-income persons. Such programs, which utilize the purchasing power of the state, have successfully improved the availability of affordable prescription drugs in other states.

This spring, the Secretary of Health and Human Services approved multistate purchasing pool plans proposed by five states. By pooling their purchasing power, these states expect to obtain significant discounts on prescription drug medications. Because of the initiative taken by these states, the citizens of Alaska, Michigan, Vermont, New Hampshire, and Nevada may collectively save over $12 million in 2004. Utah can and should explore the advantages of entering into such an arrangement with other states so that Utahns can enjoy the same cost savings.